By Derek Hunter
As Ukraine’s financial and
security situation deteriorated, it became clear that it needed additional
financial support, which it received through a $17.5 billion loan package from
the IMF. However, the terms of the IMF’s package require Kiev to persuade
private creditors to accept $15.3 billion in write-offs or deferred payments
over four years. Nonetheless, in ongoing negotiations private creditors like
Franklin Templeton have refused to take a loss on their Ukrainian bonds and only
offered to extend the maturity of the bonds but not write-off any principal
payments. As the New York Times reports, Ukraine’s finance minister launched the latest
salvo in these negotiations when he warned in a series of interviews in London
that private creditors should not “hold out” against a settlement.
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